The value capture approach can be done a number of different ways – such as applying levies to property owners and businesses that benefit from increased property values.

It can also involve developing land along rail corridors and over train stations to realise the value of those assets (so-called Transit Oriented Developments).

For example, Hong Kong’s MTR (which is majority owned by the Hong Kong Government) is a vertically integrated operation that not only runs trains, it also owns shopping centres and apartment buildings on rail land.

MTR is basically Sydney Trains, Westfield and Meriton rolled into one – and last year made a staggering profit of $3.6 billion.

If NSW were to adopt a value capture approach then the State Government could invest in Transit-Oriented Developments along rail corridors and at stations.

And when new rail lines are built, the property owners and businesses who profit from increased land values could pay a portion of their windfall back to the government to help pay for that infrastructure.

It’s good, sensible policy – increasing densities around transport nodes, providing housing options for people closer to the city, and generating a vital income stream for government.

But here’s the rub: instead of developing its rail assets in order to reinvest the money back into the system, the Baird Government is looking for private developers to do the work – and take the profits – for them.

This is not capturing value – it’s liberating value and sending it straight into the arms of merchant bankers, property developers and multinationals.

According to media reports, the Baird Government is apparently in discussions about developing the airspace over rail lines with MTR, the Hong Kong-based multinational it has already contracted MTR to run the North West Rail Link.